Tacoma called the hottest real estate market in US

According to last week's report in CBS Moneywatch, the Tacoma Metro area is the best real estate market in the country!

Best and worst housing markets for next five years (CBS Moneywatch)

What's your opinion?

OK, Dear Readers, here's your chance to express your delight, outrage, confidence, terror, or anything else in the wake of The House's failure yesterday to agree on The Bailout.

Do you agree with the DOOMGLOOM national media that this failure signals the beginning of the End of Days as we know them? Or are you a Contrarian who sees it differently?

Click COMMENTS below and let us know your thoughts!

Does immigration help the economy?

By The Gonzales Group

RISMEDIA-There are two stories now being told about immigration and the future of America. Each has some basis in fact, although one is based on newer trends and is more optimistic than the other. These stories differ in their answers to three crucial questions: whether immigrants to the United States are assimilating into American society, whether they are progressing economically over time, and how important immigrants are to the U.S. economy.

The pessimistic story - in which immigration is portrayed as increasing dramatically and producing a growing population of unassimilated foreigners - draws upon older evidence. But more recent data and analysis suggest a far more positive vision of our immigrant future. Immigration has not only begun to level off, but immigrants are climbing the socio-economic ladder, and will become increasingly important to the U.S. economy as workers, taxpayers, and homebuyers supporting the Baby Boomer generation.

The following is from a report drawn from Dowell Myers’s new book, “Immigrants and Boomers: Forging a New Social Contract for the Future of America” (Russell Sage Foundation, 2007). Dowell Myers, Ph.D., is a specialist in urban growth and development, with expertise as a planner and urban demographer. Professor Myers is an academic fellow of the Urban Land Institute and a member of the Governing Board of the Association of Collegiate Schools of Planning. He has published recent articles in the Journal of the American Planning Association, Demography, American Sociological Review, and Housing Policy Debate.

Among the findings of this report:

1) The Story Behind the Numbers: Immigration is Slowing Down, Not Speeding Up:

Immigration had been accelerating up until about 2000, but since then the annual flow has declined in the U.S. as a whole and in most states. Nonetheless, some alarmists suggest that immigration is rising and continues at record levels by averaging the years from 1995 to 2006 and disguising the downturn.

2) Indices of Assimilation:

In places where immigration is a new event, most immigrants are newcomers and are therefore less assimilated. However, in locales where immigrants are longer settled, such as California, they have achieved much greater socioeconomic advancement. For example, in California:

- The share of Latino immigrants who are homeowners rises from 16.4 % of those who have been in the U.S. for less than 10 years to 64.6% of those who have been here for 30 years or more.

- English proficiency more than doubles from 33.4 % of those who have been in the U.S. for less than 10 years to 73.56% of those who have been here for 30 years or more.

The pessimistic outlook on immigrant assimilation is more commonly found in states where immigration has only recently begun to increase, but such a new experience does not afford a reliable projection of the future.

3) Aging America

Failure to examine how much immigrants typically advance over time leads to false conclusion that they are trapped in poverty and impose an economic burden on society. Moreover, U.S. society is itself changing, and the aging of the Baby Boomer generation will create growing demand for younger workers. The ratio of seniors (age 65 and older) to working age adults (25 to 64) will soar to 67 % between 2010 and 2030. Immigrants and their children will help to fill these jobs and support the rising number of seniors economically. At the same time, immigrant homebuyers are also crucial in buying homes from the increasing number of older Americans.

Immigrants will clearly be important in leading us out of the current housing downturn.

For more information, visit www.thegonzalesgroup.com.

Hard evidence: Best time to buy is now!

This is a very rare opportunity if you're thinking of buying. Inventory is large, rates are still at a historic low, and sellers are willing to accept your offer. I have the numbers comparing closing prices between 2007 and 2008 to date--including the average and median prices--for all cities in Kitsap County.

If you appreciate numbers, you'll find these very informative. Send me an email request and I'll send you the stats.

What are you waiting for?

Hesitant to get into the market or wary about moving up to a larger home? Afraid of paying too much for a house? Feel like you're at a store and want to make a purchase, but you've been told the store is having a sale next month?

If this sounds like someone you know, read on!

The fact is that the real estate market is nothing like a retail store. The fact is that nobody--not Ben Bernanke, not the New York Times, not even The Donald--knows where the bottom of the market is. We’ll know only after it has already "corrected" itself and is on the way back up.

This is the best buyers' market in eighteen years! I'm just as clueless as Bernanke and Trump about where the bottom is, but I promise you that a year from now prices will be higher than they are today.

Why is it time to get off the fence?

*Right now there are a lot of homes for sale, which means you have many choices and you'll be able to find a home you really love.

*Prices have adjusted approximately 7% on Bainbridge Island-more in some markets, less in others. This market has already had its sale!

*Interest rates are good.

Waiting often doesn’t pay. Now is the time to start building long-term wealth.

Seller tactics: buyer incentives

In a slowing market, sellers can find it tempting to believe in magic solutions. With unsold inventories growing, some sellers resort to offering flashy incentives for buyers. Everything from big-screen TVs to vacation packages are being tacked onto listings in the hope of
attracting interested buyers.

In truth no amount of flash or gimmickry will change how buyers feel about your home's core qualities, but incentives that appeal to a buyer's wallet can be effective in certain situations. Here are some buyer's incentives that may help set your home apart from the rest:

Paying Points - The current housing slump has placed mortgage concerns in the minds of many buyers. Sellers who offer to pay mortgage points for the buyer (sometimes referred to as "buying down the mortgage") are more likely to attract buyers who are nervous about their monthly payments or interest rate. Each point you pay equals 1 percent of the loan amount, so mortgage
buy downs lower both the interest rate and the monthly payment.

Down-Payment Aid - One of the biggest hurdles for many home buyers, especially first-time home buyers, is the down payment. Help with the down payment may in many cases be more important to the buyer than the actual asking price itself. This incentive works well for those selling "starter" homes that are more likely to draw first time home buyers.

Closing Costs Help - Legal fees, title insurance, filing fees – closing costs can add up in a hurry for buyers, typically totaling somewhere between 2 and 7 percent of the total loan amount. Sellers who offer to assist with the closing costs will appeal to cash buyers short on cash.

Home Warranty - Including a year (or two) of home warranty coverage serves as a peace of mind for the buyer that they won't have to foot the bill for unexpected repairs in the first year or two of ownership. Most policies include service to the home's HVAC, interior plumbing, appliances and major fixtures. The low cost of home warranties (typically a few hundred dollars) makes them a low risk-high reward incentive to offer.

Maintenance Fees - Some features of a home that you may consider "selling points" (hot tub, sauna, gas fireplace, AC system, etc.) can actually seem like detractions to buyers due to their related maintenance costs. You can assuage a buyer's concerns by offering to pay for the first year's maintenance.

Landscaping - Offering to spring for a few additional landscape features can be a nice way to let buyers add personal touches to the property without taking on personal expense. Keep in mind that adding such touches before putting the home on the market may have a greater impact (provided, of course that your landscaping choices aren't woefully misguided).

Condo/Homeowners Association Fees - In a condominium complex or planned community, homeowners dues add to the monthly cost of ownership. If the first year's worth of dues are taken care of by the seller, potential buyers have one less early-expense to worry about.

Price Reduction - Price reductions don't usually come to mind when discussing incentive strategies. No single factor is more important than the asking price. But a well-timed price reduction can indicate to buyers that you are flexible and serious about selling the home.

Upgrades - In most cases major home repairs and touch ups should be completed prior to putting the listing on the market. However, offering to finance certain aesthetic changes, such as new exterior or interior paint, can be marketed as a means for the buyer to add their own personal touch to the home.

Extras - If you're going to offer a "throw-in" as an incentive, why not tailor the offer to the charms of your home? For example, the antique hutch that perfectly complements your entryway might be included in the list price. If you've invested time and money in a prized back deck, including a
premium gas grill could be a logical pairing. Buyers often view wild incentive offers with skepticism, but "thoughtful throw-ins" don't carry the same air of desperation.

Why so many homes on the Bainbridge market?

The Bainbridge real estate market seems to have hit a wall. 226 homes are on the market, some of them available for months. Why? Hint: it isn't the location!


Five Pricing Pitfalls

When it's time to sell your home, it's very easy to be snared in the overpricing trap. After all, you want top price for your home, don't you? And we all know that prices have risen dramatically in recent years. Given that, it's logical that the asking price you set could be higher than "fair market value." Unfortunately, you probably won't realize it's too high until much later.

Here are just a few of the disappointments you'll be facing with an overpriced house:
Responses to your ads will probably be slow, since the public recognizes overpricing. Remember, people buy by comparison. Some prospects who are attracted may be the wrong ones. They will be attracted because they're looking for a home priced the same as yours – but with MORE features. Very few buyers will even make an offer on an overpriced home. The reason? Even if you accept their lower offer, they aren't getting a bargain since the final price is probably no less than "fair market value." Your home will help buyers make a favorable decision on other homes that are priced fairly. Do you really want to be the example that drives people elsewhere? If you do find a buyer at your price, their mortgage application could be rejected because of a low appraisal; the house simply doesn't meet the standards that the price indicates.

This all sounds rather bleak, so what can you do to solve the pricing issue? Work with an experienced professional who knows the market in your neighborhood. Take advantage of the research and advice your real estate agent can offer, and you'll be on your way to setting the right price for your home